Adobe Premiere Elements 11
Windows 7 64Bit
ATI Radeon HD2600 video card
When I add the video and run it from the project assets it all looks fine, as soon as I add it to the timeline the colors wash out and I get a lot of black where colours should be, I have tried adding the video using the right-click 'insert to timeline', this sometimes works but I still see some distortment of colours when they play, I have tried to export in case it was just a preview issue but what I see is what I get.
I have had a chance to play around with the videos and find that if I import the originals (.MOV) then it does not have these problems, I had converted them to MP4 as they are to be embedded into HTML5 pages, seems there are either issues with MP4's or the encoding.
As long as PrEl will work with the original file (usually the case) it is better to work with original files... as you have discovered